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2021-12-31-accounts

The Parochial Church Council of St Nicholas, Sutton

Sutton Team Ministry Christ Church St Barnabas St Nicholas

St Nicholas Church, Sutton

Jesus said ‘I have come that you might have life and have it to the full’ John 10:10

www.stnicholas.suttonteam.org.uk

ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

Registered Charity No. 1134049

Priest in charge

Revd. Frances Arnold

The Rectory 34 Robin Hood Lane Sutton SM1 2RG

Independent Examiner

Carol Evans

Bankers

Metro Bank

The Parochial Church Council of St Nicholas, Sutton

Annual Report for the Year Ended 31[st] December 2021

Functions of the Parochial Church Council

St Nicholas Church is a Parish Church situated in central Sutton and is part of the Sutton Team Ministry. It is also part of the Diocese of Southwark within the Church of England. The correspondence address is The Rectory, 34 Robin Hood Lane, Sutton, Surrey, SM1 2RG.

The St Nicholas Parochial Church Council (“PCC”) has the responsibility for co-operating with the Priest in charge to promote the whole mission of the church, pastoral, evangelistic, social and ecumenical. It also has maintenance responsibilities for the church and community Hall of St Nicholas, St Nicholas Way, Sutton. The London Borough of Sutton is responsible for the maintenance of the church grounds. St Nicholas forms part of the Sutton Team Ministry and is part of an ecumenical partnership with Trinity Church and Sutton Baptist Church.

The PCC is a charity registered with the Charity Commission. Those who served as members of the PCC during the year were as follows:

Revd Frances Arnold Priest in charge
Gill Ayres from 23 May 2021
Lily Bande from 23 May 2021
Paul Butler Treasurer from 21 June 2021
Emma Cann Safeguarding Officer
Alistair Cruickshank Stewardship/Planned Giving Officer
PCC Rep & Ecumenical Rep until 23 May 2021
Jenny Gilbe Deanery Synod Rep until 1 July 2021
John Kerr Churchwarden
Pamela Kerr Deanery Synod Rep until 1 July 2021
PCC Secretary until 21 June 2021
Glynis Osborne from 23 May 2021, Ecumenical Rep from 14 July 2021
Matthew Phillips
Rebecca Phillips Treasurer until 21 June 2021
Geoff Rendall Churchwarden
Jeff Richards Reader & ex officio on PCC until 1 April 2021
Nicki Richards Safeguarding Officer
Henry Sawyerr until 23 May 2021
Ben Singer from 23 May 2021
Patricia Squires Deanery Synod Rep from 1 July 2021
Diane Young PCC Rep until 23 May 2021
Deanery Synod Rep from 1 July 2021

Rita Anderson was PCC Secretary from June to October 2021, but was not a member of the PCC.

The 2020 APCM was postponed to 2021 in the light of Covid restrictions. The tenure of Churchwardens, Deanery Synod Representatives and PCC members was extended accordingly.

Statement of Public Benefit

The members of the PCC are aware of the Charity Commission guidance on public benefit in ‘The Advancement of Religion for the Public Benefit’ and have had regard to it in their administration of the PCC. The PCC believes that by promoting the work of the Church of England in the parish of St Nicholas, Sutton, Surrey, it provides a benefit to the public by:

1

The Parochial Church Council of St Nicholas, Sutton

Structure, Governance and Management

The method of appointment of PCC members is set out in the Church Representation Rules. All Church attendees are encouraged to register on the Electoral Roll and stand for election to the PCC.

The PCC have met 9 times during the year, the first meeting taking place in January. Most subsequent meetings were held by zoom, due to the coronavirus pandemic, with decisions approved by email.

In person meetings were held in October and November, but the planned December meeting was cancelled in line with the current guidance on the pandemic. It was sometimes necessary to make decisions by email.

Apart from its routine business, major items of business included

The Archdeacon of Reigate, the Ven Moira Astin, spoke about PCC roles and responsibilities at the second meeting of the newly elected PCC on 14 July

The PCC operates through a number of committees and working groups, which meet between full meetings of the PCC. These committees are set out below:

The membership and functioning of the groups and committees was affected by the pandemic.

Standing Committee:

This is the only committee required by law and at present consists of the Priest in charge, the Wardens, the Treasurer, Matthew Phillips and Nicki Richards. It has power to transact business of the PCC between its meetings, subject to any directions given by the Council. It met on Zoom on 14 November. A planned in person meeting on 12 December was postponed in line with the current guidance on the pandemic.

Premises Group:

The Premises Group’s purpose is to ensure the general maintenance of the premises so that they are fit for purpose, and for exploring the development and use of the church premises so that they will be of benefit to the congregation and the community. It has responsibility for the effective running of the Community Hall as a central resource for the local community.

The Group did not meet in 2021. It was hoped to identify new members.

Finance Committee:

Oversees the general financial dimension of the work of St Nicholas by monitoring income and expenditure, budgeting, maintaining appropriate financial controls and co-ordinating regular reviews of planned giving.

Community Hall Working Group

The CHWG was reconstituted in December 2020 as a temporary group to facilitate preparation of the Elim Church hiring agreement and to look to update other existing contracts. The work of the committee was conducted by email.

Safeguarding

The PCC has complied with the duty under section 5 of the Safeguarding and Clergy Discipline Measure 2016 to have due regard to the House of Bishops guidance on safeguarding children and vulnerable adults. It is in the process of implementing recommendations to ensure that all recruitment is done safely.

2

The Parochial Church Council of St Nicholas, Sutton

Financial Review

The year saw a rise in unrestricted funds, which increased from £11,960 to end the year with £30,955. Designated funds decreased, from £35,107 to £22,607. Restricted funds increased, from £1,008,275 to £1,172,420 which included a legacy receipt of £61,005 and a Community Hall increase in value of £100,000. Net assets amounted to £1,225,982 (2020: £1,055,657) which, after deducting the value of the Community Hall of £1,000,000, leaves net disposable assets of £225,982 (2020: £155,657).

Total income increased, from £103,487 in 2020 to £160,221 in 2021. Expenditure decreased from £102,397 to £89,896, resulting in a surplus of £70,325 for the year (2020: surplus of £1,088). Of the total, £6,495 represented an unrestricted surplus and £63,830 a restricted surplus.

Voluntary income, comprising of fundraising, grants, legacies, planned giving and collections, rose during the year from £69,150 to £129,986. This included a legacy, received from the estate of the Late Kathleen Dukelow of £61,005 which has been added to the restricted New Capital Fund. Planned giving rose slightly from £43,410 to £46,025 and cash collections rose from £2,640 to £2,906. Sundry donations fell slightly from £7,717 to £7,462, which included £2,801 in income to the Poor Fund, representing distributions from the Henry Smith Charity of £2,000 and £801 in ancient endowments for the relief of the poor. Tax recovered this year from the Gift Aid scheme and the Gift Aid Small Donations scheme amounted to £11,893 (2020: £11,422).

Community Hall letting income rose to £26,077 (2020: £21,712) which improved as COVID-19 pandemic measures eased. Expenditure amounted to £23,236 which created a small surplus.

Income from clergy fees increased from £1,219 to £1,805. This income is derived from set fees charged by the clergy in carrying out services such as weddings and funerals. The diocese allows clergy expenses incurred in carrying out this activity to be offset against these fees and St Nicholas retains a small proportion of this income. This year, £1,358 was assigned and paid to the diocese.

The Parish Support Fund is a sum paid to the Diocese of Southwark, most of which goes to pay the stipends, housing and pensions of the clergy; it also operates as a pooling system enabling richer parishes to support poorer ones. St Nicholas benefits considerably from the pooling arrangement. The amount paid by St Nicholas in 2021 was £37,000 which is a significant reduction of 12.9% from £42,478 paid in 2020.

Unrestricted Funds

Unrestricted funds are funds which can be used by the PCC for any purpose within its remit. Gifts and donations to these funds are not subject restrictions upon how these funds may be spent . These comprise of the Church General Fund and Community Hall Fund.

Church General Fund

This fund is used for the general income and expenditure of the church. These funds are used for the general upkeep of the church, to pay our contribution to the diocesan Parish Support Fund, and to pay for ongoing repairs and administrative costs. In 2021 the Church General Fund received income of £69,643 (2020: £80,027) and incurred expenditure of £65,989 (2020: £76,959). This year £2,500 was transferred into Church Repair Fund and a further £20,000 transferred from the Recovery Fund to part clear the fund’s deficit. Altogether this resulted in an operating surplus of £21,154, which compares with a surplus of £569 in 2020. As a result the deficit balance on this fund, which stood at £41,465 at the end of 2020, has reduced to £20,311.

Community Hall Fund

This fund is used to account for income generated from hall bookings and expenditure on its administration and upkeep. Hall bookings increased in 2021 to £26,077 (2020: £21,712). Hall maintenance, repairs and expenses fell slightly to £23,236 (2020: £24,006), with all essential repairs and maintenance having been carried out. A transfer of £5,000 was made to the Hall Repair Fund and the result was a deficit of £2,159 (2020: £7,294 deficit). The balance in this fund is now £51,266 (2020: £53,425).

Designated Funds

Designated funds are a type of unrestricted fund containing moneys which have been set aside by the PCC for specific purposes. These comprise of the Recovery, Church Repair and Hall Repair Funds.

Recovery Fund

This fund was set up by the PCC to hold £20,000 set aside to be drawn upon until the Church General Fund has been brought into an operating balance. This fund has been drawn down in its entirety in order to reduce the deficit balance in the Church General Fund.

3

The Parochial Church Council of St Nicholas, Sutton

Church Repair Fund

This fund was set up in 2015 to hold funds put aside from the Church General Fund to make provision for major repairs to the church building. The need for such repairs occurs at irregular intervals and this fund is designed to make it easier to manage the consequent large fluctuations in expenditure. The intention is to make transfers into the fund every year. In 2021, £2,500 was transferred in. There was no expenditure incurred by this fund in 2020, and as a result has a surplus balance of £9,527.

Hall Repair Fund

This fund was also set up in 2015 for similar reasons to the Church Repair Fund (see above). £5,000 was transferred into the fund in 2021. There was no expenditure from this fund in 2020 and as a result there is now a surplus of £13,080.

Restricted Funds

Other funds maintained by the Church are restricted in that the sums may be spent only on the specific purposes for which they were given.

New Capital Fund

The New Capital Fund is designed to be used for capital projects in the Church. The PCC elected to receive the entirety of the legacy from the Late Kathleen Dukelow into this fund. There were no other transactions during the year, and the fund ended the year with a balance of £162,272.

Floodlighting Fund

The Floodlighting Fund was set up to raise money to pay for the exterior floodlighting of the Church and for repairs to the floodlighting equipment. This fund generated no income during the year and had no costs charged to it, with the result that the fund had a surplus of £409 at the end of the year.

Poor Fund

The Poor Fund receives income from ancient permanent endowments left by people who had a connection with St. Nicholas in the past for the benefit of the poor of the parish and to be distributed at the discretion of the Rector or the Rector and Church Wardens. The assets are held in trust at Lloyds Bank and the income received represents the income generated from the fund’s investments. During the year, the Poor Fund received £2,801 in income and incurred £50 in expenditure which resulted in a surplus of £2,751. The fund finished the year with a balance of £3,352.

Church Toilet Fund

The Church Toilet Fund was set up in 2001 from a grant from the Wates Foundation. There were no transactions on this fund in 2020 and it again closed the year with a balance of £5,768.

Missions Fund

The Church Missions fund is used to receive cash donations from the congregation to be distributed to specific charities selected monthly by the PCC, and to make occasional donations determined by the PCC. A total of £695 was raised and £621 was distributed to various charitable causes during the year. The fund finished the year with a deficit balance of £619.

Next year

The Church’s immediate priority is to maintain a financial balance within its unrestricted General and Community Hall Funds and a balanced budget has been set for the year ahead. Community Hall rental charges have now reverted to pre-pandemic levels and this income is expected to increase significantly. Repairs will be made to the Church fabric financed from the New Capital Funds.

Reserves Policy

It is the PCC’s policy to maintain a balance on unrestricted and designated funds at an appropriate level in order to cover emergency situations that may arise from time to time. The year end balance of £53,562 (2020: £47,068) represents 31 weeks cover of unrestricted and designated expenditure (2020: 18 weeks).

Investment Policy

It is our policy to invest our funds balances with the CBF Church of England Deposit Fund.

4

The Parochial Church Council of St Nicholas, Sutton

Independent Examiner’s Report on the Unaudited Financial Statements of the Parochial Church Council (PCC) of St. Nicholas Church, Sutton.

I report on the financial statements for the year ended 31 December 2021 set out on pages 6 to 13.

Respective responsibilities of the Trustees and Independent Examiner

As trustees of the charity, the members of the PCC are responsible for the preparation of the accounts. They consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed .

It is my responsibility to:

Basis of Independent Examiner's Statement

My examination was carried out in accordance with the General Directions given by the Charity Commission.

An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the management committee concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in a full audit, and consequently I do not express an audit opinion on the accounts.

Independent Examiner's Statement

In connection with my examination, no matters have come to my attention

  1. which give me reasonable cause to believe that in any material respect the requirements

  2. to keep accounting records in accordance with s.130 of the 2011 Act; or

  3. to prepare accounts which accord with these accounting records have not been met; or

  4. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts

  5. to be reached.

C.A. Evans

Dated: 27 April 2022

Chartered Accountant Springroyd ClaphamRoad Austwick Lancaster LA2 8BE

5

The Parochial Church Council of St Nicholas, Sutton

Statement of Financial Activities

For the Year Ended 31st December 2021

Unrestricted
Funds
Note
£
Incoming resources
2
Voluntary income
65,485
Activities for generating funds
30,194
Investment income
41
Total Incoming Resources
95,720
Resources expended
3
Expenditure on charitable objectives
-
Church Activities
89,225
Total resources expended
89,225
Net incoming (outgoing) resources
6,495
Transfers between funds
12,500
Gains on revaluation of fixed assets
4		 Unrestricted
Funds
Note
£
Incoming resources
2
Voluntary income
65,485
Activities for generating funds
30,194
Investment income
41
Total Incoming Resources
95,720
Resources expended
3
Expenditure on charitable objectives
-
Church Activities
89,225
Total resources expended
89,225
Net incoming (outgoing) resources
6,495
Transfers between funds
12,500
Gains on revaluation of fixed assets
4		 Designated
Funds
£
-
-
-
-
-
(12,500)		 Restricted
Funds

£
64,501
-
-
64,501
621
50
671
63,830
-
100,000		 Total Funds
2021
£
129,986
30,194
41
160,221
621
89,275
89,896
70,325
-
100,000		 Total Funds
2020
£
69,150
34,024
313
103,487
1,232
101,165
102,397
1,088
-
-
Fund Balances B/Fwd
FUND BALANCES C/FWD		 11,960
30,955		 35,107
22,607		 1,008,590
1,172,420		 1,055,657
1,225,982		 1,054,569
1,055,657

6

The Parochial Church Council of St Nicholas, Sutton

Balance Sheet

For the Year Ended 31st December 2021

Note
Fixed Assets
Tangible fixed assets
4
Current Assets
Debtors
Tax due on gift aid
Short term deposits
Cash at bank & in hand
Creditors; Amounts Falling Due
Within One Year
Sundry creditors and accruals
Net Current Assets
Creditors; Amounts Falling Due
in more than one Year
NET ASSETS
Represented by;
Unrestricted funds
5
Designated funds
5
Restricted funds
5
TOTAL FUNDS		 2021
2020
£
£
£
£
1,000,000
900,000
251
0
3,000
2,817
96,873
96,832
127,530
56,611
227,653
156,260
(1,671)
(603)
225,982
155,657
-
-
1,225,982
1,055,657
30,955
11,960
22,607
35,107
1,172,420
1,008,590
1,225,982
1,055,657		 2021
2020
£
£
£
£
1,000,000
900,000
251
0
3,000
2,817
96,873
96,832
127,530
56,611
227,653
156,260
(1,671)
(603)
225,982
155,657
-
-
1,225,982
1,055,657
30,955
11,960
22,607
35,107
1,172,420
1,008,590
1,225,982
1,055,657
227,653
(1,671)
1,055,657
11,960
35,107
1,008,590
1,055,657

Approved by the Parochial Church Council and signed on its behalf :

.......................................................... Chair

.......................................................... Churchwarden

.................................................... Date

7

The Parochial Church Council of St Nicholas, Sutton

1. Accounting Policies

The financial statements have been prepared in accordance with the Church Accounting Regulations 2006 together with applicable accounting standards and the Charities SORP 2015

The financial statements have been prepared under the historical cost convention except for the valuation of fixed assets (the Community Hall) which is shown at the market value. The financial statements include all transactions, assets and liabilities for which the PCC is responsible in law. They do not include the accounts of church groups that owe their main affiliation to another body, nor those that are informal gatherings of church members.

Funds

Restricted funds represent donations and grants received for a specific object or invited by the PCC for a specific object. The funds may only be expended on the specific object for which they were given. Any balance remaining unspent at the end of the year must be carried forward as a balance on that fund.

Unrestricted Funds are funds which can be used by the PCC for any purpose within its remit. Designated Funds are a type of unrestricted fund containing moneys which have been set aside by the PCC for specific purposes.

Incoming Resources

Planned giving, collections and donations are recognised when received. Tax refunds are recognised when the incoming resource to which they relate is received. Grants and legacies are accounted for when the PCC is legally entitled to the amounts due. Interest is accrued. All other income is recognised when it is receivable. All incoming resources are accounted for gross.

Resources Expended

Grants and donations are accounted for when paid over, or when awarded, if that award creates a binding or constructive obligation on the PCC. The parish support fund pledge is accounted for when due. Amounts received specifically for mission are dealt with as restricted funds. All other expenditure is generally recognised when it is incurred and is accounted for gross.

Fixed Assets

Consecrated and benefice property is not included in the accounts in accordance with s.96(2)(a) of the Charities Act 1993.

Movable church furnishings and fittings require a faculty for disposal and are inalienable property. These items are listed in the Church’s inventory and may be inspected at any reasonable time.

It is the policy of PCC to capitalise assets with a cost of over £1,000 per item. Depreciation is set on a straight-line basis over a period of five years.

Freehold land and buildings are valued by the PCC at least every five years by a chartered surveyor.

Investments are valued at market value at the Balance Sheet date

8

The Parochial Church Council of St Nicholas, Sutton

Notes to the Financial Statements for the Year Ended

31st December 2021 (Continued)

2. Incoming Resources

Voluntary income
Planned giving
Cash collections
Sundry donations
Receipts for Charities & Missions
Capital fundraising income
Floodlighting donations
Grants
Legacies
Tax recoverable
Activities for Generating Funds
Bookstall
Catering
Hall lettings
Clergy fees
Administration costs recovered
Miscellaneous activities
Investment income
Interest receivable
TOTAL INCOMING RESOURCES		 Unrestricted
Designated
Restricted
Total Funds Total Funds
Funds
Funds
Funds
2021
2020
£
£
£
£
£
46,025
46,025
43,410
2,906
2,906
2,640
4,661
-
2,801
7,462
7,717
695
695
961
-
-
-
-
-
-
-
-
-
-
61,005
61,005
3,000
11,893
-
11,893
11,422
65,485
-
64,501
129,986
69,150
-
-
134
220
220
-
26,077
26,077
21,712
1,805
1,805
1,219
-
-
607
2,092
2,092
10,352
30,194
-
-
30,194
34,024
41
-
41
313
41
-
-
41
313
95,720
-
64,501
160,221
103,487

9

The Parochial Church Council of St Nicholas, Sutton

Notes to the Financial Statements for the Year Ended

31st December 2021 (Continued)

**3. ** Resources Expended
Unrestricted Designated **Restricted ** Total Funds Total Funds
Funds Funds Funds 2021 2020
£ £ £ £ £
Expenditure on charitable objectives
Mission and charitable giving - 621 621 1,232
- - 621 621 1,232
Church Activities Expenditure
Diocesan Parish Support Fund 37,000 37,000 42,478
Clergy fees assigned to diocese 1,358 1,358 888
Clergy & pastoral expenses 1,165 1,165 1,289
Church cleaning & maintenance 5,955 - 5,955 10,184
Church heat, light & insurance 7,059 7,059 7,905
Church toilet - - -
Church administration 11,216 11,216 11,272
Church sound system - - -
Church floodlighting - - -
Church music 1,025 1,025 805
Church sanctuary 278 278 474
Church bookstall - - 93
Church Sunday School - - -
Catering & social events 29 29 128
Training - - -
Hall maintenance 1,422 1,422 895
Hall repairs 231 231 803
Hall expenses 21,582 21,582 22,308
Other support costs 105 - 105 843
Poor fund donations 50 50 200
Audit fees 800 800 600
89,225 - 50 89,275 101,165
TOTAL RESOURCES EXPENDED 89,225 - 671 89,896 102,397

10

The Parochial Church Council of St Nicholas, Sutton

Notes to the Financial Statements for the Year Ended 31st December 2021 (Continued)

4. Tangible Fixed Assets

Cost
1st January 2020
Additions
Revaluation
31st December 2020
Depreciation
31st December 2020
Net Book Value
31st December 2020
31st December 2019		 Freehold
Land &
Buildings
£
900,000
-
100,000
1,000,000
-
1,000,000
900,000		 Church Hall
Equipment
TOTAL
£
£
3,432
903,432
-
-
-
100,000
3,432
1,003,432
3,432
3,432
-
1,000,000
-
900,000

Freehold land and buildings consists of the Church Community Hall. This asset is accounted for within a separate restricted Hall Property Fund (note 5) and has been revalued at a replacement value of £1,000,000 as at 31st December 2021.

11

The Parochial Church Council of St Nicholas, Sutton

Notes to the Financial Statements for the Year Ended

31st December 2021 (Continued)

5. Fund Details

Unrestricted Funds
General Church Fund
Community Hall Fund
TOTAL
Designated Funds
Recovery Fund
Church Repair Fund
Hall Repair Fund
TOTAL
Restricted Funds
Hall Property Fund
New Capital Fund
Floodlighting Fund
Mission Fund
Church Toilet Fund
Poor Fund
TOTAL
TOTAL FUNDS		 2021
2020
£
£
(20,311)
(41,465)
51,266
53,425
30,955
11,960
-
20,000
9,527
7,027
13,080
8,080
22,607
35,107
1,000,000
900,000
162,272
101,267
409
409
619
545
5,768
5,768
3,352
601
1,172,420
1,008,590
1,225,982
1,055,657

12

The Parochial Church Council of St Nicholas, Sutton

Notes to the Financial Statements for the Year Ended 31st December 2021 (Continued)

6 Funds Movements

Unrestricted Funds
General Church Fund
Community Hall Fund
TOTAL
Designated Funds
Recovery Fund
Church Repair Fund
Hall Repair Fund
TOTAL
Restricted Funds
Hall Property Fund
New Capital Fund
Floodlighting Fund
Missions Fund
Church Toilet Fund
Poor Fund
TOTAL
TOTAL FUNDS		 Balance 1st
January 2021
Incoming
Resources
Resources
Expended
Gains on
revaluation
of fixed asset
Transfers
Between
Funds
Balance
31st
December
2021
(41,465)
69,643
65,989
-
17,500
(20,311)
53,425
26,077
23,236
-
(5,000)
51,266
11,960
95,720
89,225
-
12,500
30,955
20,000
-
-
(20,000)
-
7,027
-
-
2,500
9,527
8,080
-
-
5,000
13,080
35,107
-
-
-
(12,500)
22,607
900,000
-
-
100,000
- 1,000,000
101,267
61,005
-
-
-
162,272
409
-
-
-
-
409
545
695
621
-
-
619
5,768
-
-
-
-
5,768
601
2,801
50
-
-
3,352
1,008,590
64,501
671
100,000
-1,172,420
1,055,657
160,221
89,896
100,000
- 1,225,982

7 Analysis of Net Assets

Tangible Fixed Assets
Current Assets
Creditors; amounts falling due within one year
Net Assets		 Unrestricted
Funds
Designated
Funds
Restricted
Funds
Total 2021
1,000,000
1,000,000
32,626
22,607
172,420
227,653
(1,671)
-
(1,671)
30,955
22,607
1,172,420
1,225,982

13